The federal government said about 90 percent of Nigeria’s 42 million agricultural households may not be producing optimally, citing unsuitable seeds, inadequate farm inputs and poor agronomic practices as constraints to productivity.
Abubakar Bagudu, minister of budget and economic planning, said improving farm productivity could increase agricultural output, strengthen food security and create investment opportunities.
Bagudu spoke at the closing ceremony of the 32nd Nigerian Economic Summit (NES #32) in Abuja on Tuesday. The summit’s theme was ‘Growth That Works: Delivering Jobs, Productivity and Shared Prosperity.’
‘Of these 42 million households in agriculture, maybe 90 percent or even above are not doing it optimally,’ Bagudu said, identifying unsuitable seeds, inadequate inputs and inappropriate farming practices as constraints.
He said the productivity gap was not necessarily due to farmers’ unwillingness to work but reflected limited access to the inputs and support needed to improve yields.
‘They are either using the incorrect seed, inadequate inputs, inappropriate agronomic practice, not because they are lazy,’ he said, noting that some farmers begin work as early as 4am.
Bagudu urged businesses to invest across agricultural value chains, including farm input supply, production, processing and market access.
He said raising farm productivity could increase output and improve farmers’ incomes.
The minister said the government planned to map economic opportunities across Nigeria’s 8,809 wards to identify local needs and attract investment. He called for greater cooperation among federal, state and local governments and the private sector to expand economic activity.
He also said public resources should be used to reduce the risks associated with private investment, particularly in sectors where financing constraints discourage businesses from committing capital.
‘Budget or public resources should be used … to de-risk private investment,’ Bagudu said.
He cited government support for the Bank of Industry, Bank of Agriculture and the National Agricultural Development Fund as part of efforts to improve financing for productive sectors.
Bagudu also called on businesses to expand domestic investment, saying Nigeria had the market to support more large-scale enterprises.
‘Why not 100 other BUAs? Why not 100 other Dangotes?’ he asked, urging businesses to invest in ventures that could drive production and employment.
He said government initiatives in consumer credit, mortgages and credit guarantees were intended to improve access to financing and support economic activity.
The minister added that investment in early childhood nutrition and skills development was important for improving productivity and preparing workers for changes in the labour market, including the growing use of artificial intelligence.
He acknowledged that the benefits of economic reforms were taking time to reach households and businesses. He called for continued cooperation between the government and private sector to translate reforms into higher productivity, job creation and improved living standards.
The Nigerian Economic Summit Group organised NES #32 in partnership with the Federal Government.